French group to raise $3b for Long Thanh Airport

The French group Aeroports de Paris (ADP) will collaborate with the financial services holding company Credit Swiss to mobilise US$2.5 billion to $3 billion for Long Thanh International Airport Project in Viet Nam's Dong Nai Province.

Speaking at a meeting with the Minister for Transport Dinh La Thang in Ha Noi on Monday, the President and Director General of the French group Aeroports de Paris (ADP) Augustin de Romanet said the French firm was seeking to become a strategic investor of the Airport Corporation of Viet Nam (ACV).

A image of Long Thanh International Airport in Dong Nai Province. It is designed to be the largest airport in Viet Nam with a capacity of handling 100 million passengers annually.

He said ADP was willing to acquire 25 per cent to 30 per cent of the French group's chartered capital before ACV launches its initial public offering (IPO).

ACV has plans to sell 25 per cent of its shares at the IPO in the second quarter of this year by offloading part of the State's holding shares and issuing new shares to raise its chartered capital.

According to figures released in a decision made last year, ACV was valued at VND38 trillion (about $1.76 billion) of which the State shares account for over VND20 trillion.

ADP also proposed participating in the Long Thanh Airport project by establishing a consortium between the French group and ACV to develop and operate the terminal at the airport.

Minister Thang said he appreciated the experiences shared by ADP about ACV equitisation and the Long Thanh Airport development plans.

He said the report for the project would be considered by the National Assembly during its meeting in May.

The Ministry of Transport must first have the NA's approval before it can proceed; Thang was quoted by Tuoi Tre (Youth) newspaper as saying.

(Source: VNS)